Productivity Standards

An employer is entitled to impose productivity standards for its employees, and the latter’s non-compliance therewith can lead to his termination from work.

1. Concept

An employer is entitled to impose productivity standards for its employees, and the latter’s non-compliance therewith can lead to his termination from work. (Puncia v. Toyota Shaw/Pasig, Inc., G.R. No. 214399, 28 June 2016)

An employer is entitled to impose productivity standards for its workers, and in fact, non-compliance may be visited with a penalty even more severe than demotion. Thus, the practice of a company in laying off workers because they failed to make the work quota has been recognized in this jurisdiction (Leonardo v. NLRC, Reynaldo’s Marketing Corporation, G.R. Nos. 125303, 126937, 16 June 2000)

Leonardo v. NLRC, Reynaldo’s Marketing Corporation, G.R. Nos. 125303, 126937, 16 June 2000

⦁ The employees’ failure to meet the sales quota assigned to each of them constitute a just cause of their dismissal, regardless of the permanent or probationary status of their employment. Failure to observe prescribed standards of work, or to fulfill reasonable work assignments due to inefficiency may constitute just cause for dismissal. Such inefficiency is understood to mean failure to attain work goals or work quotas, either by failing to complete the same within the allotted reasonable period, or by producing unsatisfactory results. This management prerogative of requiring standards may be availed of so long as they are exercised in good faith for the advancement of the employer’s interest.

2. Quality Standards

Employers have the prerogative to impose productivity and quality standards at work.

They may also impose reasonable rules to ensure that the employees comply with these standards. Failure to comply may be a just cause for their dismissal. Certainly, employers cannot be compelled to retain the services of an employee who is guilty of acts that are inimical to the interest of the employer. (Sameer Overseas Placement Agency, Inc. v. Cabiles, G.R. No. 170139, 05 August 2014)

3. Termination ground

Non-observance/compliance with productivity or work standards may be a just cause to dismiss the employment of an employee.

Realda v. New Age [the Company], G.R. No. 192190, 25 April 2012

⦁ [The Complainant-employee’s] failure to observe [the Company’s] work standards constitutes inefficiency that is a valid cause for dismissal. Failure to observe prescribed standards of work, or to fulfill reasonable work assignments due to inefficiency may constitute just cause for dismissal. Such inefficiency is understood to mean failure to attain work goals or work quotas, either by failing to complete the same within the alloted reasonable period, or by producing unsatisfactory results. As the operator of [the Company’s] printer, he is mandated to check whether the colors that would be printed are in accordance with the client’s specifications and for him to do so, he must consult the General Manager and the color guide used by [the Company] before making a full run. Unfortunately, he failed to observe this simple procedure and proceeded to print without making sure that the colors were at par with the client’s demands. This resulted to delays in the delivery of output, client dissatisfaction, and additional costs on [the Company’s] part.

/Updated: February 15, 2023

Similar Posts